Nepal Budget 2023/24: Key Sector Allocations and Announcements

Nepal Budget 2023/24: Key Sector Allocations and Announcements

Discover the major announcements and sectoral allocations outlined in the Nepal budget 2023/24, presented by Finance Minister Prakash Sharan Mahat. With a total size of Rs 1.751 trillion, the budget aims to implement ambitious programs while addressing past unimplemented initiatives. Let’s explore the key highlights for each sector:

  1. Special announcements:

  • Each member of the House of Representatives will receive Rs 50 million for the constituency development program, with a total allocation of Rs 8.25 billion.
  • Introduction of QR codes for payment of all types of revenues.
  • Busy government offices will operate in two shifts.
  • No specific raise in employees’ salary, but the recommendations of the Salary Commission will be implemented gradually.
  1. Measures for expense control:

  • 20 non-operational government agencies will be scrapped.
  • Public utilities will be operated in a company model, and strategic partners will be invited for problematic public utilities.
  • No new buildings and vehicles will be acquired unless necessary.
  • No additional motivational allowances.
  • No foreign trips unless necessary.
  • No creation of additional positions.
  1. Innovation, invention, and investment:

  • Rs 7 billion allocated for driving towards an independent economy.
  • Rs 1 billion for innovation and invention research.
  • At least 1% of the annual budget will be spent on innovation, invention, and research.
  • Rs 1.25 billion for startups.
  • Promotion of “Make in Nepal” and “Made in Nepal” initiatives.
  1. Sectoral allocations for key sectors:

  • Agriculture: Rs 58.98 billion allocated, including grants based on production, support for modernization projects, promotion of native indigenous crops, and technical support expansion.
  • Forest and environment: Rs 15.56 billion allocated, including the President Chure Conservation Project and the promotion of paper and cloth bags instead of plastic bags.
  • Land management: Rs 7.24 billion allocated, including providing land acquisition certificates to landless people and allowing halted land plotting.
  • Industry, commerce, and supplies: Rs 9.46 billion allocated, including the expansion of industrial districts, development of special economic zones and industrial villages, and support for micro-entrepreneurship projects.
  • Labour, employment, and social security: Rs 8.08 billion allocated, including the Prime Minister Employment Programme and promotion of contribution-based social security.
  • Culture, tourism, and civil aviation: Rs 11.96 billion allocated, including the celebration of Visit Nepal Decade, promotion of domestic tourism, construction of the Great Himalayan Trail, and reconstruction of cultural monuments.
  • Education, science, and technology: Rs 197.29 billion allocated, including scholarships, school day meal programs, free sanitary pads, and establishment of medical colleges.
  • Health and population: Rs 83.99 billion allocated, including control of communicable diseases, expansion of hospitals, free medicines, and improved services.
  • Water supply: Rs 28.16 billion allocated, including the expansion of the Melamchi Water Supply Project and wastewater treatment plants in Kathmandu.
  • Transport infrastructure: Rs 131 billion allocated, including the widening and upgrading of highways, construction of the Kathmandu-Terai fast track, and development of different road projects.
  • Urban development: Rs 2.15 billion allocated, including infrastructure development for local governments and housing for homeless people.
  • Energy, water resources, and irrigation: Rs 87.45 billion allocated, including irrigation projects, increasing electricity accessibility, adding to the national transmission line, and promoting alternative energy.
  • Communications and information technology: Rs 7.71 billion allocated, including the operation of a national cyber security center and restructuring of the postal service.
  • Climate change and disaster reduction and management: Special climate projects and relocation of disaster-hit and vulnerable populations.
  • Security and defense: Upgrading digital forensic lab, relocating central jail, and completing police adjustment.

These are some of the major announcements and allocations in the Nepal budget for the fiscal year 2080/81.